SSP Group Plc (SSPG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Compass Group Plc

Mitchells & Butlers Plc

JD Wetherspoon Plc

Marston's Plc

Fuller, Smith & Turner Plc

Young & Co.'s Brewery Plc

Loungers Plc

SSP Group Plc

Domino's Pizza Group Plc

DP Eurasia NV

The Restaurant Group Plc

Why is SSP Group Plc ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 20.48% and Operating profit at 23.10% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 8.95% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 20.48% and Operating profit at 23.10% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 7.43%, its profits have fallen by -60%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is SSP Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SSP Group Plc

9.02%

0.09

34.66%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.48%

EBIT Growth (5y)

23.10%

EBIT to Interest (avg)

-1.55

Debt to EBITDA (avg)

13.66

Net Debt to Equity (avg)

3.92

Sales to Capital Employed (avg)

1.89

Tax Ratio

29.24%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

8.95%

ROE (avg)

16.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

18.31

EV to EBIT

8.96

EV to EBITDA

3.50

EV to Capital Employed

2.45

EV to Sales

0.66

PEG Ratio

Dividend Yield

222.54%

ROCE (Latest)

27.38%

ROE (Latest)

54.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 1,252.7 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 55.02 times

INTEREST COVERAGE RATIO(Q)

Highest at 726.71

RAW MATERIAL COST(Y)

Fallen by -0.18% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 24.1

NET SALES(Q)

Highest at GBP 1,977.4 MM

OPERATING PROFIT(Q)

Highest at GBP 413.5 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.91 %

PRE-TAX PROFIT(Q)

Highest at GBP 148.9 MM

-6What is not working for the Company

NET PROFIT(Q)

At GBP 3.76 MM has Fallen at -94.27%

ROCE(HY)

Lowest at -48.11%

DEBT-EQUITY RATIO (HY)

Highest at 2,213.03 %

Here's what is working for SSP Group Plc

Operating Cash Flow

Highest at GBP 1,252.7 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Highest at 726.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 55.02 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at GBP 1,977.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 413.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 20.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 148.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Dividend per share

Highest at GBP 24.1

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -0.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 213.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for SSP Group Plc

Net Profit

At GBP 3.76 MM has Fallen at -94.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Debt-Equity Ratio

Highest at 2,213.03 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio